The Hidden Costs of Affording a New Home

(GayWebSource.com) Time and time again we see people blindsided by the true cost of buying their first home. Many people fall into a comfort zone of denial that has them believing that all they will be paying is the monthly principal and interest on the new home. They’re quite shocked when they realize that the total cost of owning their own home is a lot more than they thought.  Sometimes these costs are so extreme that some buyers have been forced to back out of a deal because they were not realistic about what the final monthly tally might be for their home ownership.

Let’s discuss the true costs of affording a home.

• Home owners insurance.

You can’t buy a home unless you have it so get a quote for home owner’s insurance in place. This is also sometimes called hazard insurance. It provides you basic liability against people injuring themselves on your property as well as protection against robbery, fire, wind, water, etc.  Usually you have to pay a bit extra for flood insurance.

• Mortgage Insurance.

You also might have to fork out for mortgage insurance if your down payment on the home is less than twenty percent (20%) of the total cost. This too can add a couple of hundred dollars more onto what you must pay each month ~ ask your mortgage lender for an estimate of this cost, it varies depending on the size of your loan.

• Property Taxes.

Factor in the cost of property taxes. If you are not sure how much this is, ask your gay real estate agent, or check the details of the property brochure for an estimate, but always verify this number with the county assessor’s office. Keep in mind this estimate of the property taxes is on the current assessors’ value of the home… if you’re paying more for the home, your taxes will be adjusted up at some point.  Be very sure to assess this properly because taxes can add hundreds of dollars to what might be a sky-high mortgage in the first place.

• HOA Fees.

Another “sneaky cost” that you might have to be aware of is home owner’s association fees or condo association fees (HOA). This is true if you move into a condominium or subdivision that has common areas – You may have to pay fees to upkeep the lobby, the front gardens, picnic areas, green space, pools, community centers and other items.

• Utilities.

Many people who go from renting to ownership also do not realize that they have to pay for their own utilities; water, sewer, gas and electric. Sometimes these utilities can add hundreds of dollars to the monthly costs of maintaining your home.  My brother in Minneapolis recently had a 3 month $950.00 water bill! (In the land of 10,000 lakes) Oh, and don’t forget trash.

• Maintenance and Repairs.

If you’ve bought an older house you also have to factor in money for maintenance and repairs. These monthly repairs, often necessary, can add up.

To be safe we advise you to do your homework before you put an offer into a home, your professional gay realtor at GayRealEstate.com is able to help you determine your exact cost when buying a home.

Investing in a home is still historically the absolute best investment you can make. Pay yourself by building equity and taking advantage of the appreciating markets, vs. paying your landlords mortgage down – Happy house hunting!

Author Jeff Hammerberg is the Founding CEO of www.GayRealEstate.com ~ Free Instant Access to the Nation’s Top Gay Realtors, Lesbian Realtors and Gay Friendly Realtors Coast to Coast offering Free Buyers Representation and Free Relocation Assistance.

Media Provided by the GayWebSource.com – Gay Media and Press Network.